A subsidiary of RLHC (Red Lion Hotels Corporation) will enter into a joint venture with an affiliate of Shelbourne Capital to acquire The Quincy hotel in downtown Washington, D.C., for an undisclosed amount. A definitive agreement has been signed and the transaction is expected to close on the 99-room boutique hotel by mid-October, subject to customary closing conditions. RLHC will enter into a long-term agreement to manage the property as a Hotel RL.
"This transaction gives RLHC the opportunity to place our new Hotel RL brand squarely in the center of the Dupont Circle Neighborhood of Washington, D.C., just a few blocks from The White House," said Angela Landgraf, RLHC SVP of corporate development. "With this announcement following the opening of the first Hotel RL in Baltimore's Inner Harbor on August first, the Hotel RL brand is staking its claim in the top U.S. markets. Hotel RL is generating strong interest from investors, the hotel industry and most importantly our guests."
RLHC will use a portion of its cash on the balance sheet to purchase its equity stake in the joint venture. This capital, combined with other investor equity and anticipated debt financing, will be used to complete the purchase of the property and invest approximately $2.0 million in renovations to convert the property to a Hotel RL.
"We are focused on continuing our national expansion efforts and Washington DC represents a key market opportunity," said Greg Mount, president & CEO of RLHC. "The Quincy Hotel has a long rich history and we look forward to continuing to provide Washington DC guests a great destination and exciting hotel experience."